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Opinion
Andy Mukherjee

'Bityuan' Won't Kill China's Banks. Yet

The PBOC's own digital currency would be a boon to lenders, until Beijing decided to go further.

Now it's becoming clear that China's central bank will be one of the first to issue a digital currency, it's legitimate to ask if "bityuan" will send the country's banking system over the edge. The short answer: Not just yet.

An initial version of bityuan will probably be a tame affair. Research at the People's Bank of China favors a system where the monetary authority would issue the cryptocurrency to banks, which would supply it to their customers.